indirect employment in tourism examples

What Is Direct and Indirect Employment in Tourism?

By Robert Palmer

When it comes to the tourism industry, there are two types of employment- direct and indirect. Understanding the difference between these two types of employment is essential, not only for those who work in the industry but also for tourists who want to make informed decisions about their travel choices.

Direct Employment in Tourism

Direct employment refers to jobs that are directly related to the tourism industry. This includes jobs such as tour guides, hotel staff, and travel agents. These jobs are typically located in the areas where tourists visit and are directly involved in providing services to tourists.

Examples of Direct Employment Jobs:

• Tour Guides
• Hotel Staff (Receptionist, Room Service, Housekeeping)
• Airport Staff (Security Personnel, Ticketing Agents, Baggage Handlers)
• Travel Agents

Indirect Employment in Tourism

Indirect employment , on the other hand, refers to jobs that support the tourism industry but are not directly related. This includes jobs such as farmers who supply food to hotels or taxi drivers who transport tourists from one location to another. These jobs may not be located in areas where tourists visit but still play a crucial role in supporting the industry.

Examples of Indirect Employment Jobs:

• Farmers and Food Suppliers
• Taxi Drivers and Transportation Service Providers
• Retailers selling souvenirs and handicrafts
• Cleaners and Maintenance Workers at tourist attractions

The Importance of Both Types of Employment

Both direct and indirect employment play a crucial role in supporting the tourism industry. Direct employment provides essential services to tourists such as accommodation, transportation, and guided tours. Indirect employment supports these services by providing necessary supplies such as food and souvenirs.

Moreover, both types of employment have a significant impact on the local economy. Direct employment offers job opportunities to people living in areas where tourists visit, boosting the local economy. Indirect employment also contributes by providing job opportunities to people who may not be located in tourist areas but still benefit from the industry’s growth.

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20 Indirect Jobs in Tourism: The Behind-the-Scenes Contributors

• By Christian Brandt
• August 24, 2023

The tourism industry is a complex network of interconnected roles that go beyond the obvious, front-facing positions. In this article, I will give 20 examples of indirect jobs in tourism, shedding light on the often unnoticed contributions made by behind-the-scenes contributors.

Dive into this informative article and gain a deeper understanding of how these individuals contribute to your vacation enjoyment. Explore the diverse range of roles, and appreciate the often overlooked work that goes into creating unforgettable trips.

Difference Between Direct and Indirect Jobs in Tourism

An important distinction exists between direct and indirect roles within the tourism industry, with direct positions involving direct interaction with tourists and indirect positions supporting the infrastructure and operations behind the scenes.

Direct jobs in tourism encompass various roles such as tour guides, hotel staff, and travel agents who directly interact with tourists. These positions require strong communication skills, cultural knowledge, and customer service abilities to ensure a positive tourist experience. On the other hand, indirect jobs in tourism include professionals working in sectors like transport, accommodation management, marketing, event planning, and government agencies responsible for policy development.

While these roles may not have direct contact with tourists, they play a crucial role in creating a seamless experience for visitors by ensuring smooth transportation logistics, maintaining quality accommodations, promoting destinations through effective marketing strategies, and organizing events to attract tourists’ attention while adhering to government regulations.

Indirect jobs are essential for supporting the overall functioning of the tourism industry by providing necessary infrastructure and operational support behind the scenes. And now let us take a look at 20 examples of indirect jobs in tourism!

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1) Food Supplier for Restaurants

The food supplier for restaurants plays a crucial role in the tourism industry by providing the necessary ingredients and supplies to support the culinary offerings of dining establishments. These suppliers ensure that restaurants have access to a wide variety of high-quality food products, ranging from fresh produce to meat, dairy, and specialty items.

They work closely with chefs and restaurant owners to understand their specific needs and preferences, offering tailored solutions that meet the demands of both local and international cuisines.

Moreover, food suppliers play a significant part in maintaining consistent quality standards across multiple locations of restaurant chains or hotel groups. By ensuring a reliable supply chain, they contribute to the overall success of the tourism industry by enabling restaurants to offer diverse menus that attract visitors from all over the world.

2) Cultural Heritage Preservation Specialist

Preserving cultural heritage is a multifaceted task that involves the documentation, conservation, and promotion of tangible and intangible aspects of a society’s history and traditions. Cultural heritage preservation specialists play a crucial role in safeguarding and promoting these valuable assets.

These professionals possess extensive knowledge of historical contexts, architectural styles, traditional practices, and oral traditions. They are responsible for conducting research, documenting artifacts, conserving physical structures, organizing exhibitions or events, and collaborating with communities to ensure the transmission of cultural knowledge.

By utilizing their expertise in archival methods and conservation techniques, cultural heritage preservation specialists contribute to the sustainable development of tourism by attracting visitors interested in experiencing authentic cultural experiences. Their work not only preserves the past but also fosters social cohesion, identity formation, and economic growth through tourism revenue generation while ensuring the protection of intangible values for future generations.

3) Maintenance Technician for Accommodations and Attractions

Maintenance technicians conduct regular inspections to identify potential issues or hazards that may affect visitor experience or safety. They also perform preventive maintenance tasks to minimize equipment downtime and maximize operational efficiency. By adhering to industry standards and regulations, maintenance technicians contribute to the overall quality assurance of tourist attractions.

Moreover, these professionals respond promptly to any emergencies or breakdowns that may occur during operating hours. Their quick problem-solving skills ensure minimal disruption to visitors’ experiences while safeguarding their well-being.

4) Marketing Copywriter for Tourism Campaigns

Marketing copywriters for tourism campaigns craft compelling and persuasive messages to attract and engage potential visitors, utilizing their creative writing skills to effectively communicate the unique experiences and attractions offered by a destination. These professionals play a crucial role in promoting tourism by creating captivating content that resonates with the target audience. Their primary objective is to generate interest and desire among potential visitors, ultimately leading to increased tourist arrivals.

To achieve this, marketing copywriters employ various techniques such as storytelling, emotional appeal, and highlighting key features of the destination. They conduct thorough research on the target market’s preferences and interests to tailor their messages accordingly. By analyzing data on consumer behavior, market trends, and competitor strategies, these copywriters ensure that their campaigns are relevant, engaging, and effective in driving tourism growth for a specific location.

5) IT Support for Online Booking Platforms

One crucial aspect of ensuring the smooth operation of online booking platforms is reliable IT support, which involves addressing technical issues, troubleshooting system errors, and providing assistance to users in navigating the platform effectively. IT support plays a significant role in maintaining the functionality and user-friendliness of these platforms.

Without proper IT support, users may encounter difficulties in accessing information or making bookings, leading to frustration and potential loss of business for tourism companies. Data shows that 76% of travelers prefer to book their accommodations online, highlighting the importance of a seamless booking experience.

Additionally, studies have found that customers who have positive experiences with online booking platforms are more likely to become repeat customers and recommend the platform to others. Therefore, investing in robust IT support systems is crucial for tourism businesses to maintain customer satisfaction and loyalty in an increasingly digital world.

6) Event Logistics Coordinator

Event logistics coordinators are responsible for overseeing the planning, coordination, and execution of various logistical aspects involved in organizing events, ensuring that all necessary resources and services are efficiently managed to ensure a successful event. They play a crucial role in the seamless execution of events by handling tasks such as venue selection, transportation arrangements, equipment rental, and catering services.

By applying their analytical skills and knowledge of event management principles, they ensure that all logistical requirements are met within budget constraints. This includes coordinating with vendors, negotiating contracts, and managing timelines to optimize efficiency.

A dditionally, event logistics coordinators must be able to adapt quickly to changing circumstances and problem-solve effectively to address any issues that may arise during an event. Their expertise is essential in creating memorable experiences for attendees while maintaining a well-organized and smoothly run event.

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7) Landscape Maintenance Worker for Parks

The work they perform requires a combination of physical labor, technical skills, and knowledge aboutof plant care. For instance, they must understand proper pruning techniques to maintain the health and shape of trees and shrubs.

Additionally, they need to be knowledgeable about irrigation systems to ensure adequate watering without wasting resources. Through their efforts, landscape maintenance workers contribute to creating pleasant environments that promote relaxation and enjoyment for park-goers while preserving natural beauty.

8) Public Relations Specialist for Travel Destinations

In addition to data analysis, another important behind-the-scenes contributor in the tourism industry is the Public Relations (PR) specialist for travel destinations. PR specialists play a crucial role in promoting and managing the image of travel destinations to potential visitors.

Their responsibilities include developing strategic communication plans, coordinating press releases and media events, cultivating relationships with journalists and influencers, and managing crisis communications. By effectively communicating the unique features and attractions of a travel destination, PR specialists help generate positive publicity and increase visitor numbers.

They also work closely with tourism boards, government agencies, hotels, airlines, and other stakeholders to ensure cohesive messaging and branding. The success of their efforts can be measured by media coverage, social media engagement, visitor feedback surveys, and ultimately increased tourist arrivals.

9) Data Analyst for Tourism Trends

By utilizing various statistical techniques and analytical tools, data analysts can extract meaningful information from vast amounts of data. This information helps stakeholders in the tourism industry make informed decisions regarding marketing strategies, product development, pricing strategies, and resource allocation.

Additionally, data analysts provide valuable insights into customer preferences, travel patterns, and destination choices that can be used for targeted marketing campaigns. Overall, their expertise aids in maximizing profitability and competitiveness within the dynamic landscape of the tourism industry.

10) Accounting Consultant for Hospitality Businesses

Accounting consultants for hospitality businesses provide financial expertise and guidance to ensure the effective management of financial resources and compliance with industry regulations. These professionals play a critical role in helping hospitality businesses maintain accurate and transparent financial records, analyze financial data, and make informed decisions.

They are responsible for tasks such as preparing financial statements, managing budgets, conducting internal audits, and ensuring tax compliance. Accounting consultants also assist in identifying areas for cost reduction, improving revenue generation, and implementing effective internal controls.

By leveraging their knowledge of accounting principles and industry-specific regulations, they help hospitality businesses optimize their financial performance and mitigate risks. Their analytical skills enable them to identify trends, patterns, and areas of improvement based on financial data analysis. 

11) Transportation Fleet Manager for Tour Companies

Their responsibilities include scheduling vehicle maintenance, tracking fuel usage and costs, monitoring driver performance, and ensuring compliance with safety regulations. Effective fleet management requires analyzing data related to vehicle utilization, maintenance schedules, and fuel consumption to identify areas for improvement in terms of cost efficiency and operational effectiveness.

Additionally, transportation fleet managers need to stay updated on industry trends and technological advancements that could enhance their operations. By employing their analytical skills and knowledge of transportation logistics, these managers contribute to the seamless functioning of tour companies’ transportation services while maintaining high standards of efficiency and customer satisfaction.

12) Sustainability Consultant for Eco-Tourism Initiatives

Sustainability consultants for eco-tourism initiatives provide expert advice and strategies to promote environmentally responsible practices within the tourism industry. These consultants play a vital role in helping businesses operate more sustainably, reducing their negative impact on the environment while also enhancing their long-term viability.

By conducting thorough assessments of current practices and identifying areas for improvement, sustainability consultants can develop tailored strategies that address specific environmental concerns. This may include implementing energy-efficient technologies, reducing waste generation, conserving water resources, and promoting biodiversity conservation.

Through their expertise and knowledge of best practices, sustainability consultants help eco-tourism initiatives minimize their carbon footprint and preserve natural resources while still providing visitors with memorable experiences. Their analytical approach ensures that these recommendations are grounded in data-driven evidence and align with industry standards for sustainability.

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13) Security System Installer for Resorts

They must possess knowledge of various security technologies and be skilled in integrating them into the resort’s infrastructure effectively. Additionally, they need to stay updated with the latest advancements in security systems to provide optimal protection. By employing competent security system installers, resorts can create an atmosphere of safety that enhances guest satisfaction and contributes to the overall success of the establishment.

14) Convention Center Facility Manager

Convention center facility managers are responsible for overseeing the maintenance, operations, and overall functionality of the convention center’s facilities and infrastructure. They play a critical role in ensuring that the space is well-maintained and equipped to meet the needs of various events and conferences. Facility managers are involved in tasks such as coordinating with vendors for repairs or upgrades, managing budgets for maintenance and renovations, and implementing safety protocols.

In addition, they must have a thorough understanding of building codes, fire safety regulations, and accessibility requirements to ensure compliance. By efficiently managing resources and maintaining high standards of quality, convention center facility managers contribute to creating a conducive environment for successful events while maximizing revenue generation opportunities. Their expertise is essential in facilitating smooth operations behind the scenes at convention centers.

15) Social Media Manager for Travel Brands

Through their analytical approach, social media managers utilize data-driven insights to identify key trends and preferences of their target audience. They conduct market research to understand consumer behavior and develop content strategies that resonate with potential travelers.

By leveraging various social media platforms, these managers can effectively communicate the unique selling points of a travel brand, highlight its offerings, and foster meaningful relationships with customers. Furthermore, they constantly monitor campaign performance metrics such as reach, engagement rate, and conversion rates to optimize their strategies accordingly.

16) Travel Insurance Provider

The role of a travel insurance provider is to offer coverage and protection to individuals traveling domestically or internationally, ensuring that they are financially safeguarded against unforeseen circumstances such as trip cancellations, medical emergencies, or lost luggage.

Travel insurance providers play a crucial role in mitigating the financial risks associated with travel by providing policies that cover various aspects of travel-related expenses. These policies typically include reimbursement for canceled trips due to unforeseen events, medical expenses incurred during travel, emergency medical evacuation services, and compensation for lost or stolen baggage.

By analyzing data on customer claims and trends in the travel industry, these providers determine the appropriate coverage and pricing for their policies. They operate within a highly regulated industry where compliance with local laws and regulations is essential to ensure the validity and legality of their offerings.

17) Waste Management Personnel for Tourist Areas

Waste management personnel in tourist areas play a crucial role in maintaining cleanliness and sanitation, ensuring the proper disposal of waste generated by tourists, and mitigating the environmental impact of tourism activities. These individuals are responsible for managing the collection, transportation, and disposal of waste efficiently and sustainably.

They work closely with local authorities, businesses, and residents to develop effective waste management strategies that meet the specific needs of tourist destinations. By implementing proper waste management practices, these personnel contribute to preserving the natural beauty of tourist areas and protecting the health and well-being of both visitors and local communities.

Moreover, their efforts help reduce pollution, conserve resources, and promote sustainable tourism development. Data-driven approaches are employed to analyze waste generation patterns, plan for adequate infrastructure requirements, educate tourists on responsible waste disposal practices, and monitor compliance with regulations.

18) Market Researcher for Travel Demographics

Another important behind-the-scenes contributor to the tourism industry is the market researcher for travel demographics. Market researchers play a crucial role in analyzing and understanding the preferences, behaviors, and trends of travelers. By collecting and analyzing data on factors such as age, income level, nationality, travel patterns, and interests, these professionals provide valuable insights that help tourism businesses tailor their offerings to meet customer demands.

Market researchers employ various methods including surveys, focus groups, and data analysis to uncover patterns and make informed recommendations for marketing strategies. Their work helps businesses identify target markets, develop effective promotional campaigns, optimize pricing strategies, and improve overall customer satisfaction. The expertise of market researchers ensures that tourism businesses remain competitive in an ever-evolving industry by keeping up with changing consumer preferences.

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19) Linen and Bedding Supplier for Hotels

An essential aspect of hotel operations involves sourcing and maintaining a steady supply of linen and bedding. This is crucial for ensuring guest comfort and satisfaction. Hotel linen suppliers play a vital role in meeting the demands of the hospitality industry. They provide a range of products, including bed sheets, pillowcases, towels, and bathrobes. Suppliers must ensure that these items meet quality standards and are regularly replaced to maintain their pristine condition.

The demand for hotel linen is directly influenced by factors such as occupancy rates, number of rooms, and guest preferences. According to industry data, the global hotel linen market is expected to reach $12 billion by 2025, driven by the growing number of hotels worldwide. Consequently, there is a constant need for reliable suppliers who can deliver high-quality linen products efficiently and on time.

20) Government Tourism Inspector

The role of a government tourism inspector involves monitoring and evaluating compliance with regulations in the tourism industry. These inspectors play a crucial role in ensuring that businesses operating within the tourism sector adhere to established guidelines and standards. Their responsibilities include inspecting accommodations, transportation services, tourist attractions, and other related facilities to ensure compliance with safety, hygiene, and quality requirements. Government tourism inspectors also assess whether proper licenses and permits are obtained by these establishments.

A key aspect of their work is conducting regular inspections to identify any violations or areas of improvement. They analyze data collected during inspections to identify trends or patterns that may require further attention or intervention from regulatory bodies. By closely monitoring compliance with regulations, government tourism inspectors contribute to maintaining high-quality standards in the tourism industry.

Their work not only benefits tourists but also supports the overall growth and development of the tourism sector by promoting professionalism, sustainability, and customer satisfaction. Through their knowledge and expertise, they help maintain a safe and enjoyable experience for visitors while upholding industry standards.

So there you have it, a comprehensive list of 20 indirect jobs in the tourism industry. These behind-the-scenes contributors play a crucial role in ensuring the smooth operations and success of various tourist establishments and campaigns.

From supplying food to restaurants and providing maintenance services for tourist attractions to managing social media for travel brands and preserving cultural heritage, these professionals contribute significantly to the growth and development of the tourism sector. Their diverse skill sets and expertise make them an integral part of this ever-evolving industry.

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• Travel Tips

How Does Tourism Create Jobs

Published: December 12, 2023

Modified: December 28, 2023

by Jessamine Yingling

• Plan Your Trip
• Sustainability

Introduction

Tourism plays a significant role in job creation, providing employment opportunities to millions of people around the world. The tourism industry is not only a major contributor to the global economy but also a key driver of employment and economic growth for both developed and developing countries. From hotel staff and tour guides to transportation services and local artisans, tourism creates a wide range of job opportunities in various sectors.

The impact of tourism on job creation is undeniable. It stimulates the economy by generating revenue, attracting investment, and fostering infrastructure development. As people travel for leisure, business, or cultural experiences, they require a wide range of services and products, which in turn generates demand for labor.

Moreover, tourism has the potential to distribute wealth and income more evenly within a community as it often provides jobs to people in rural and remote areas where alternative employment opportunities may be limited. By promoting community-based tourism initiatives, local residents can benefit from the economic opportunities that tourism brings.

As the tourism industry continues to grow, it presents vast potential for job creation across various sectors, including hospitality, transportation, entertainment, food and beverage, and retail. This article explores the importance of tourism in job creation, the direct and indirect job opportunities available, the role of small and medium-sized enterprises (SMEs), and the challenges and strategies involved in enhancing job creation in the tourism industry.

Importance of Tourism in Job Creation

Tourism plays a crucial role in job creation, particularly in countries heavily reliant on the industry. It provides employment opportunities for a diverse range of individuals, from hotel workers and tour guides to local artisans and taxi drivers. The significance of tourism in job creation can be seen in the following aspects:

• Economic Impact: The tourism industry contributes to economic growth by generating revenue and foreign exchange earnings. This, in turn, leads to increased investment, infrastructure development, and the creation of new businesses, all of which translate into job opportunities.
• Diversity of Employment: The tourism sector offers a wide array of job opportunities across multiple sectors. From hotel management and front desk personnel to chefs and housekeeping staff, the range of employment options within the hospitality sector alone is vast. Additionally, tourism also indirectly creates jobs in industries such as transportation, food and beverage, entertainment, retail, and handicrafts.
• Seasonal and Full-Time Employment: Tourism provides both seasonal and full-time employment opportunities. Seasonal jobs are particularly beneficial in areas where the economy relies heavily on tourism during specific times of the year, such as beach destinations. These seasonal jobs often allow locals to supplement their income during peak tourist seasons.
• Spillover Effects: The growth of tourism can have positive spillover effects on other sectors of the economy. For example, as the number of tourists increases, the demand for agricultural products, such as fresh produce, meat, and dairy, also rises. This creates additional employment opportunities for farmers and agricultural workers.

Overall, the importance of tourism in job creation cannot be overlooked. It provides not only direct employment opportunities but also indirect benefits that contribute to the overall growth and development of an economy. In the following sections, we will explore the various avenues through which tourism generates employment and the significance of these opportunities for both individuals and communities.

Direct Job Opportunities in the Tourism Sector

The tourism sector directly creates a multitude of employment opportunities, encompassing various roles and responsibilities. These jobs are vital for the smooth operation and customer satisfaction within the industry. Some of the direct job opportunities in the tourism sector include:

• Hotel and Resort Staff: Hotels and resorts are at the forefront of the tourism industry, employing a large workforce. From front desk personnel and concierge staff to housekeeping, chefs, and waiters, these establishments rely on a team of dedicated professionals to ensure a comfortable and enjoyable experience for guests.
• Tour Guides: Tour guides play a crucial role in providing visitors with insightful information about tourist attractions, historical sites, and local culture. They are responsible for creating an engaging and informative experience for tourists, enhancing their understanding and enjoyment of the destination.
• Transportation Services: Transportation services, such as taxi drivers, chauffeurs, and tour bus operators, are vital for tourists to explore and move around a destination. These roles provide employment opportunities, allowing individuals to utilize their driving skills while offering convenience and accessibility to visitors.
• Concierge and Customer Service: The tourism industry heavily relies on customer service to ensure guest satisfaction. Job roles such as concierge and customer service representatives are responsible for assisting guests with their needs, providing recommendations, and resolving any issues that may arise during their stay.
• Event Planners and Organizers: Many destinations attract tourists with various events, conferences, and exhibitions. Event planners and organizers play a crucial role in coordinating and managing such events, creating employment opportunities for individuals with organizational and logistical skills.

The direct job opportunities in the tourism sector not only provide individuals with a source of income but also contribute to the overall experience and satisfaction of tourists. The professionalism and expertise of these individuals play a vital role in shaping visitors’ perceptions of a destination and determining whether they will return or recommend it to others. Thus, these direct job roles have a significant impact on the success and growth of the tourism industry.

Indirect Job Creation through Tourism

Beyond the direct job opportunities in the tourism sector, there is a ripple effect that leads to indirect job creation in various industries. Indirect job creation occurs when tourism stimulates demand for goods and services, resulting in employment opportunities in related sectors. Here are some examples of indirect job creation through tourism:

• Food and Beverage: As tourists travel and explore new destinations, they often dine out and try local cuisine. This creates a demand for restaurants, cafes, and food vendors, which in turn leads to job opportunities for chefs, servers, bartenders, and kitchen staff.
• Retail: Souvenir shops, local markets, and shopping centers thrive in tourist destinations. Tourists often purchase gifts, clothing, and locally made products, which boosts revenue and creates employment opportunities for retail workers and artisans.
• Transportation: In addition to direct transportation services, the tourism industry indirectly supports employment in the transportation sector. This includes rental car companies, airlines, cruise lines, and public transportation systems, creating job opportunities for pilots, flight attendants, drivers, and maintenance workers.
• Entertainment and Recreation: Tourists seek out entertainment and recreational activities during their trips. This can include visiting amusement parks, attending cultural performances, participating in water sports, or enjoying guided tours. These activities require a workforce of entertainers, performers, tour operators, and recreational staff.
• Infrastructure Development: A flourishing tourism industry often leads to infrastructure development, such as the construction of new hotels, resorts, airports, roads, and tourist attractions. The construction and maintenance of these facilities create jobs for architects, engineers, construction workers, and maintenance staff.

Indirect job creation is an essential component of the tourism industry, as it extends the economic benefits beyond the immediate tourism sector. It creates a multiplier effect, where the initial employment opportunities in tourism create additional jobs in related industries. This ripple effect enhances the overall economic impact and ensures a more balanced distribution of employment opportunities within the destination.

Tourism-Related Industries and Job Generation

Tourism not only creates direct and indirect job opportunities but also generates employment in various tourism-related industries. These industries are essential for supporting and enhancing the tourism experience, contributing to the overall growth and success of the sector. Here are some of the key tourism-related industries and their role in job generation:

• Travel Agencies and Tour Operators: Travel agencies and tour operators play a crucial role in organizing and facilitating travel arrangements for tourists. They provide services such as itinerary planning, booking accommodations, arranging transportation, and coordinating activities. These businesses employ travel consultants, tour coordinators, and administrative staff, creating job opportunities in the tourism industry.
• Hospitality Industry Suppliers: The hospitality sector relies on various suppliers for products and services. This includes suppliers of linens, toiletries, furniture, kitchen equipment, uniforms, and more. These suppliers employ workers in manufacturing, distribution, and sales, providing job opportunities tied to the demand of the tourism industry.
• Event Planning and Management: Destination weddings, conferences, and large-scale events contribute significantly to the tourism industry. Event planning and management companies employ event planners, coordinators, decorators, and technicians to ensure successful and memorable events for tourists and attendees.
• Adventure and Recreation: Many tourists seek adventure and recreational activities during their trips. This includes activities such as hiking, rafting, scuba diving, and wildlife safaris. Adventure and recreational companies employ guides, instructors, equipment rental staff, and safety personnel to cater to the needs of adventure-seeking tourists.
• Art and Handicrafts: Artisans and craftsmen play an important role in showcasing local culture and traditions through their creations. This includes traditional crafts, artwork, textiles, and handmade products that are popular among tourists. The demand for these products creates employment opportunities for craftsmen, artists, designers, and marketers.

These tourism-related industries add value to the overall tourism experience, providing specific goods and services that enhance the enjoyment and satisfaction of tourists. By supporting these industries, the tourism sector stimulates economic growth, fosters innovation, and creates job opportunities in diverse fields. The collaboration between the tourism industry and these related sectors is essential for a thriving and sustainable tourism ecosystem.

Role of Small and Medium-sized Enterprises (SMEs) in Tourism Employment

Small and Medium-sized Enterprises (SMEs) play a crucial role in the tourism industry, contributing significantly to job creation and economic growth. These businesses, often locally owned and operated, have a significant impact on employment opportunities within their communities. Here are some key aspects of the role of SMEs in tourism employment:

• Local Employment: SMEs in the tourism sector primarily rely on local labor, providing employment opportunities for residents in the surrounding areas. This localized approach ensures that job opportunities are available to the local community, helping to reduce unemployment rates and foster economic development at a grassroots level.
• Entrepreneurship and Innovation: SMEs often bring forth innovative ideas and unique offerings to the tourism industry. These businesses add diversity to the market, attracting different types of tourists and stimulating demand for goods and services. By encouraging entrepreneurship, SMEs contribute to job creation and economic expansion through their creative solutions and fresh perspectives.
• Supporting Local Economy: SMEs in the tourism sector have a direct and positive impact on the local economy. By sourcing products and services from local suppliers, they contribute to the growth of other industries, such as agriculture, handicrafts, and tourism-related services. This creates a network of interdependent businesses, fueling economic growth and generating employment opportunities in the wider community.
• Promoting Cultural Preservation: SMEs often focus on preserving local culture, heritage, and traditions as part of their business offerings. This includes promoting local arts, crafts, music, and traditional practices. By incorporating cultural elements into their tourism products, SMEs help to preserve and showcase the unique identity of the destination, attracting tourists who are interested in authentic and immersive experiences.
• Flexibility and Adaptability: SMEs are known for their flexibility and ability to adapt to changing market conditions. This enables them to respond quickly to evolving tourism trends and customer preferences. By staying agile, SMEs can adjust their offerings, target niche markets, and identify new areas of growth, which in turn creates employment opportunities for local talent.

The role of SMEs in tourism employment is not only essential for job creation but also for fostering sustainable and inclusive tourism development. These small and medium-sized businesses contribute to the social and economic fabric of their communities, while preserving cultural heritage and promoting innovation. Government support and policies that encourage the growth of SMEs in the tourism sector can further amplify their positive impact on employment generation and economic prosperity.

Job Diversity in the Tourism Industry

One of the remarkable aspects of the tourism industry is its job diversity, offering a wide range of employment opportunities to individuals with different skills, backgrounds, and interests. From front-line service roles to management positions and creative professions, the tourism industry provides a plethora of job options. Here are some key factors that contribute to job diversity in the tourism industry:

• Hospitality and Accommodation: The hospitality sector is a major contributor to job diversity in tourism. Within this sector, there are various job roles such as hotel management, food and beverage, housekeeping, receptionists, event planners, and more. The range of positions allows individuals to find employment based on their strengths and interests, whether it’s customer service, culinary arts, or event coordination.
• Travel and Tourism Services: The travel and tourism services sector encompasses a wide array of job opportunities. These can include travel agents, tour operators, travel consultants, reservation agents, and destination management specialists. These roles involve working closely with clients to plan itineraries, provide travel advice, and coordinate bookings, catering to the diverse needs and preferences of those seeking travel experiences.
• Outdoor and Adventure: The tourism industry offers exciting job opportunities for individuals who have a passion for outdoor activities and adventure. This can include roles such as tour guides for hiking, wildlife safaris, scuba diving instructors, ski instructors, and more. These jobs allow individuals to combine their love for adventure with their professional aspirations, providing unique and fulfilling experiences for both tourists and employees.
• Event Planning and Entertainment: Another area of job diversity in the tourism industry is event planning and entertainment. This sector offers a range of job roles such as event managers, wedding planners, conference coordinators, entertainers, and performers. These positions require creativity, organizational skills, and the ability to create unforgettable experiences for tourists and event attendees.
• Cultural and Heritage: Tourism also offers job opportunities for individuals interested in preserving and promoting cultural heritage. This includes roles such as museum curators, archaeologists, cultural tour guides, historians, and local crafts artisans. These jobs allow individuals to showcase their knowledge and passion for cultural preservation while contributing to the education and enrichment of tourists.

The diverse range of job opportunities in the tourism industry makes it an attractive field for individuals with varied interests and skill sets. Whether someone is interested in customer service, management, adventure, creativity, or cultural preservation, they can find a job within the tourism industry that aligns with their passions and career aspirations. This contributes to the overall vitality and vibrancy of the industry, creating a workforce that is diverse, talented, and dedicated to delivering exceptional experiences for tourists around the world.

Challenges and Concerns in Tourism Job Creation

While tourism creates numerous job opportunities, there are also challenges and concerns that need to be addressed to ensure sustainable job creation in the industry. These challenges can vary depending on the region and the specific tourism destination. Here are some key challenges and concerns in tourism job creation:

• Seasonality and Volatility: Many tourism destinations experience seasonality, with peak tourist seasons and low seasons. This can lead to fluctuations in demand for labor, resulting in seasonal employment and job uncertainty for those working in the industry. Finding ways to promote year-round tourism and diversify the visitor base can help mitigate this challenge.
• Skills and Training: The tourism industry requires skilled workers who can provide quality services and experiences to tourists. However, there is often a mismatch between the skills demanded by the industry and the skills possessed by the local workforce. Providing training and education programs to bridge this gap is crucial for maximizing employment opportunities and ensuring a skilled workforce.
• Low Wages and Job Insecurity: In some tourism destinations, wages for certain job roles may be relatively low, particularly in entry-level or seasonal positions. This can lead to job insecurity and limited opportunities for career advancement. Ensuring fair wages and employment contracts that provide job stability are important considerations for sustainable job creation in the tourism sector.
• Dependency on International Markets: Many tourism destinations rely heavily on international markets for visitor arrivals. However, political instability, economic downturns, natural disasters, or global crises can significantly impact tourism demand. Over-dependence on a single market can make destinations vulnerable to disruptions and create challenges in sustaining employment opportunities.
• Environmental and Cultural Impacts: The growth of tourism can sometimes have negative impacts on the environment and local cultural heritage. Overdevelopment, overcrowding, and resource depletion can damage natural attractions, while excessive tourism demand may lead to the commodification and dilution of local cultures. Balancing tourism growth with sustainability and cultural preservation is necessary to mitigate these impacts and protect employment opportunities in the long term.

Addressing these challenges requires collaboration between stakeholders, including governments, tourism boards, local communities, and industry associations. It is essential to develop sustainable tourism strategies that prioritize job creation, foster skill development, protect the environment, and promote cultural heritage. By understanding and proactively addressing these concerns, the tourism industry can continue to create meaningful and sustainable employment opportunities for communities worldwide.

Strategies to Enhance Job Creation in Tourism

Creating and enhancing job opportunities in the tourism industry requires strategic planning and implementation. Here are some effective strategies that can help boost employment in the tourism sector:

• Diversification of Tourism Products: Developing and promoting a variety of tourism products and experiences can attract a diverse range of tourists, thereby stimulating demand and creating job opportunities in different sectors. This can include ecotourism, adventure tourism, cultural tourism, culinary tourism, and more.
• Sustainable Tourism Practices: Embracing sustainable tourism practices not only helps preserve the environment and local culture but also contributes to job creation. Investing in eco-friendly initiatives, supporting local artisans and producers, and promoting responsible tourism can attract conscious travelers and generate employment opportunities tied to sustainable practices.
• Capacity Building and Skills Development: Investing in training programs and skill development initiatives for individuals working in the tourism industry is crucial. This includes providing vocational training, language proficiency courses, and customer service workshops. Enhancing the skillsets of the workforce ensures professionalism and quality services, leading to higher job satisfaction and improved career prospects.
• Public-Private Partnerships: Collaboration between public sector organizations, private enterprises, and local communities plays a significant role in job creation. Joint initiatives can support the development of infrastructure, facilitate access to funding, and promote destination marketing campaigns, ultimately driving tourism growth and employment opportunities.
• Community-Based Tourism: Empowering local communities to participate in tourism activities can create employment at the grassroots level. Community-based tourism initiatives allow locals to provide authentic experiences, share their culture, and showcase their talents. This can lead to the creation of various job roles, from tour guides and homestay hosts to cultural performers and artisans.
• Promotion of Domestic Tourism: Encouraging domestic tourism can help mitigate the impact of seasonality and dependency on international markets. Government campaigns, incentives, and special promotions can incentivize locals to explore their own country, contributing to increased tourism demand and job creation.

Furthermore, fostering an enabling business environment, improving infrastructure, and streamlining regulatory processes can attract investments in the tourism sector, leading to business expansion and job creation. The active involvement of stakeholders, including governments, tourism organizations, and local communities, is crucial to implementing these strategies effectively and ensuring sustainable job growth in the tourism industry.

The tourism industry serves as a catalyst for job creation, offering a diverse range of employment opportunities across various sectors. From direct roles in hospitality and tour operations to indirect employment in related industries, tourism plays a vital role in contributing to global job growth and economic development.

SMEs, with their entrepreneurial spirit and innovation, play a significant role in tourism employment, providing localized opportunities and fostering community integration. The industry’s job diversity allows individuals to find fulfilling careers aligned with their interests and skills, whether it be in hospitality, adventure tourism, cultural preservation, or event planning.

By embracing these strategies and prioritizing sustainable practices, the tourism industry can maximize employment opportunities while preserving natural and cultural heritage for future generations. Governments, industry stakeholders, and local communities must work together to create an enabling environment that fosters growth, supports entrepreneurship, and empowers communities.

As we look to the future, it is essential to prioritize job creation in the tourism industry, recognizing its potential to drive economic prosperity and improve livelihoods. By investing in skills development, promoting sustainable practices, and cultivating diverse tourism products, we can ensure that the tourism industry continues to be a powerful engine for job creation, economic growth, and sustainable development worldwide.

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Please note you do not have access to teaching notes, drivers of employment effects in tourism-related sectors: the case of mainland china.

Tourism Review

ISSN : 1660-5373

Article publication date: 19 December 2022

Issue publication date: 25 May 2023

Tourism is a labor-intensive sector with extensive links to other industries and plays a vital role in creating employment. This study aims to propose a new framework to analyze the intrinsic structure of the employment effects of tourism-related sectors and their drivers.

Design/methodology/approach

This study uses input–output and structural decomposition analysis (IO-SDA) to quantify the employment effects of tourism-related sectors and their driving mechanisms based on China’s I-O tables of 2002, 2007, 2012 and 2017.

The results show a declining trend in the intensity of direct or indirect employment effects in tourism-related sectors, indicating a decreasing number of jobs directly or indirectly required to create a unit of tourism output. Among tourism-related sectors, catering has the highest intensity of indirect employment effects over the study period. Catering stimulates the indirect employment of agriculture, forestry, animal husbandry, fishery and food and tobacco manufacturing. The decomposition analysis reveals that final demand is the largest contributor to the increase in tourism employment, while technological progress shifts from an employment-creation effect in 2002–2012 to an employment-destruction effect in 2012–2017.

Originality/value

This study proposes a new analytical framework to investigate the structural proportional relationship between the direct and indirect employment effects of various tourism-related sectors and their dynamic changes. Doing so, it provides valuable references for policymakers to promote tourism employment.

旅游相关部门就业效应的驱动因素：以中国为例

旅游业是一个劳动密集型部门, 与其他国民经济部门有着广泛的联系, 这在创造就业方面发挥着重要作用。本研究旨在建立一个框架, 分析旅游相关部门就业效应的内在结构及其驱动因素。

本研究基于中国2002年、2007年、2012年和2017年的投入产出表, 引入投入产出和结构分解分析（IO-SDA）法量化了旅游相关行业的就业效应及其变化的驱动机制。

旅游相关部门的直接或间接就业强度呈下降趋势, 可见创造一个单位的旅游产出所需的直接或间接工作数量在减少。在旅游相关部门中, 餐饮部门在研究期内的间接就业效应强度最高, 主要带动了农、林、牧、渔业和食品及烟草制造业的间接就业。旅游就业效应变动的驱动因素中, 最终需求是旅游就业效应增加的最大贡献者, 技术效应从2002-2012年期间的就业创造效应转变为2012-2017年期间的就业破坏效应。

本研究建立了一个全新的分析框架, 可以揭示各个旅游相关部门的直接和间接就业效应之间的结构比例关系及其动态变化。对旅游就业效应的驱动因素分析可以为政策制定者提供针对性的建议, 以促进旅游就业。

Factores que impulsan los efectos del empleo en los sectores relacionados con el turismo: El caso de China continental

El turismo es un sector intensivo en mano de obra con amplios vínculos con otras industrias y desempeña un papel vital en la creación de empleo. Este estudio propone un nuevo marco para analizar la estructura intrínseca de los efectos en el empleo de los sectores relacionados con el turismo y sus impulsores.

Diseño/metodología/enfoque

Este estudio utiliza el análisis de entrada-salida (input-output) y de descomposición estructural (structural decomposition) (IO-SDA) para cuantificar los efectos sobre el empleo en los sectores relacionados con el turismo y sus mecanismos impulsores, basándose en las tablas input-output de China de 2002, 2007, 2012 y 2017.

Conclusiones

Los resultados muestran una tendencia a la baja en la intensidad de los efectos directos o indirectos del empleo en los sectores relacionados con el turismo, lo que indica un número cada vez menor de puestos de trabajo directos o indirectos necesarios para crear una unidad de producción turística. Entre los sectores relacionados con el turismo, la restauración tiene la mayor intensidad de efectos indirectos sobre el empleo durante el periodo de estudio. La restauración estimula el empleo indirecto de la agricultura, la silvicultura, la ganadería, la pesca y la fabricación de alimentos y tabaco. El análisis de descomposición revela que la demanda final es la que más contribuye al aumento del empleo turístico, mientras que el progreso tecnológico pasa de ser un efecto de creación de empleo en 2002-2012 a un efecto de destrucción de empleo en 2012-2017.

Originalidad/valor

Este estudio propone un nuevo marco analítico para investigar la relación estructural proporcional entre los efectos directos e indirectos del empleo de varios sectores relacionados con el turismo y sus cambios dinámicos. De este modo, proporciona valiosas referencias para que los responsables políticos promuevan el empleo en el sector turístico.

• Employment effect
• Tourism-related sector
• Contributing factor
• Input–output and structural decomposition analysis
• Efecto del empleo
• Sector relacionado con el turismo
• Factor contribuyente
• Análisis “input-output” y descomposición estructural

Acknowledgements

This work was supported by the National Science Foundation of China [Grant/Award Number: 72102158].

Author contribution : Conception of the work: Jianping Zha, Lamei He; Data collection: Jianying Tang, Lamei He, Qiao Yu; Data analysis and interpretation: Lamei He, Jianping Zha, Jianying Tang, Ting Tan; Drafting the article: Lamei He, Jianying Tang; Critical revision of the article: Lamei He, Jianping Zha, Ting Tan; Final approval of the version to be published: Lamei He, Jianping Zha.

He, L. , Zha, J. , Tang, J. , Tan, T. and Yu, Q. (2023), "Drivers of employment effects in tourism-related sectors: the case of Mainland China", Tourism Review , Vol. 78 No. 3, pp. 849-873. https://doi.org/10.1108/TR-03-2022-0149

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Multiplier Effect in Tourism

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How data can bolster decent work in the tourism sector

• sector , tourism
• September 26, 2023

According to ILO estimates, over 230 million workers or approximately 7.2 per cent of the global workforce are employed in tourism industries around the world. This is in addition to the millions of jobs indirectly generated by the sector, e.g., through spillover effects of related activities. Taking into account both direct and indirect jobs, it was estimated that some 1 out of 10 jobs worldwide, and 1 out of 4 newly created jobs were linked to the tourism sector in 2019. Indeed, many studies have showcased the sector’s importance for employment and income generation, including for women and youth, and as a source of economic diversification, particularly in rural and remote areas and localities. 

Recent ILO reports have shed light on the devastating impact that the COVID-19 pandemic had on the sector, and emphasized the need for of a human-centred, inclusive and resilient recovery and a just transition to a sustainable future of work in tourism . This requires policies to improve wages, working conditions, including occupational safety and health, promote formalization, enable extending social security to informal and self-employed workers, encourage social dialogue and other elements associated with decent work outcomes for the sector’s workers, and higher productivity and sustainability for its enterprises.

But effective policies must be evidence-based, and evidence-based policies require high quality data. In this blog, we look at detailed industry level data (at the 3-digit level of the International Standard Industrial Classification of All Economic Activities – ISIC) to illustrate the diversity of the tourism sector, specifically to demonstrate how its structure and composition varies significantly across contexts. 

Tourism sector composition in different contexts

Looking at the distribution of employment across different tourism industries allows us to identify and group countries with available data by categories that transcend, or supplement, the usual regional and income groupings used in our analyses. Specifically, depending on the industry cluster that employs a large share of the sector’s workforce in different countries, we identify four groups as follows:

Group 1 : where accommodation accounts for the largest shares of tourism workers, and the travel logistics cluster can be important as well. This first group largely consists of tourism dependent small island nations (e.g., Caribbean islands, Pacific islands and other island states like the Seychelles, Mauritius and the Maldives). In these countries, tourism industries account for very large shares in employment, and the accommodation cluster – particularly short-term accommodation – accounts for the highest shares of the tourism workforce, reflecting the largely international markets served by these destinations. The travel logistics cluster (e.g., travel agencies and tour operators, and reservation services and related activities) which constitutes a small share of tourism employment in most countries, can be relatively high in some group 1 countries including in countries known for being ‘travel hubs’ such as the United Arab Emirates.

Group 2 : where restaurants and food and beverage services account for the largest share of tourism employment. These tend to be lower-middle and upper middle-income countries with both large international and domestic tourism markets. In many middle-income countries in Latin America and in Southeast Asia, the tourism sector accounts for high shares of total employment, but much of this employment is in the restaurants and food and beverage services industries, often followed by transportation (primarily by land) which cater as much – or at least as much – to local, domestic consumption, in addition to international tourism.

Group 3 : where land transportation accounts for the largest share of the tourism workforce. In these countries, the inclusion of land transportation among tourism industries significantly increases the employment share of the sector. This group’s countries are primarily low or lower-middle income countries in Africa and South Asia and Southeast Asia. It also includes some lower middle and upper-middle countries from the Arab States (e.g. Lebanon, Iraq, Jordan).

Group 4: where arts, culture, sports and recreation account for a significant share of the tourism workforce. In these upper-middle- or high-income countries mainly in Europe, the largest share of the tourism workforce is employed in restaurants and food and beverage services. Arts, culture, sports and recreation represent the second cluster of industries in terms of employment share.

Nearly all countries in group 1, and many countries in group 2 are often listed as tourism-dependent countries, defined as countries where tourism industries account for a large share of GDP, exports, and employment. While group 1 countries tend to have both high shares of employment in tourism industries, and high international tourism receipts as a percentage of total exports, this is not the case for most countries in the other groups. In the latter groups,  domestic tourism expenditure tends to be higher than inbound tourist expenditure in most countries, reflecting more diversified economies and greater reliance on domestic markets. For instance, in Mexico (group 2), where close to 12 per cent of the workforce is employed in tourism industries, domestic tourism expenditure represented 83 per cent of total tourism expenditure. Indeed, on average, for OECD countries – most of which would fall in Group 4 – domestic tourism expenditure accounted for 75 per cent of total tourism expenditure in 2018 .

There are interesting cases where international tourism receipts represent a significant percentage of total exports but the share of tourism – and particularly of accommodation industries – in employment is not as high as would be expected (e.g. Lebanon and Ethiopia – both in group 3). In these countries, much of the tourism receipt come from nationals residing and/or working abroad with occasional visits to these countries. Therefore, inbound tourism expenditure patterns resemble those of residents rather than international tourists (e.g., spending on restaurants, food, and beverage services rather than on hotels and accommodation).

Employment characteristics of tourism industries across country groups

Tourism is known to be a relatively labour-intensive sector, providing an important source of employment for women – including women entrepreneurs – and youth in many countries across the world. Among the tourism industries, the highest female shares in employment are in the food and beverages cluster. Female shares in employment are also high in accommodation industries. Food and beverage industries have also relatively large shares of youth in employment. Other tourism industries with high shares of youth include sports activities and other amusement and recreation activities.

While the food and beverages services industries account for a large share of the global tourism workforce, and an even larger share of its women and youth workforce, employment in these industries is often characterized by large (usually, the largest) shares of self-employment and employment in micro, small and medium enterprises (MSMEs), high informality rates, and relatively lower productivity and wages.

In contrast, the industries which are less labour-intensive and usually account for a relatively limited share of tourism employment, have the lowest informality rates, and relatively higher wages. These include industries with very low shares of self-employment and employment in MSMEs (e.g., passenger air transportation, sea and coastal water transportation and transportation via railways), but also industries where the MSME share in employment can be relatively high (e.g., in travel agency and tour operator activities).  

Other tourism industries with high shares of self-employment and employment in MSMEs and high informality rates across all country groups include other land transportation (i.e., excluding railways); inland water transport; renting and leasing of personal and household goods industry; creative, arts and entertainment activities; and other amusement and recreation activities.

Additionally, the data show that in most tourism industries, the share of workers in informal jobs tends to be far greater than the share of workers employed in informal production units. This means that many workers employed in formal, registered enterprises in tourism industries have informal jobs, associated with limited access to social protection and other elements of decent work.

While the above-mentioned characteristics of employment in tourism industries are common across the four country groups, there are also group-specific patterns that emerge, and which are linked to contextual factors. For instance, in group 1 countries, the MSMEs share in employment in the short-term accommodation activities is lower than in other groups, reflecting the presence of large hotel resorts in many countries. This is also reflected in a relatively lower share of informal jobs and of workers on temporary contracts in this industry, in comparison with other groups. Another example is with respect to average working hours, which tend to be far lower in group 4 countries than in group 2 and 3 countries in the restaurants and mobile food service activities industry (not illustrated here due to lack of data for other industries), reflecting a higher prevalence of part-time work in these industries in upper-middle- and high-income countries.

This exploration of employment in tourism industries along different dimensions has unveiled its diverse and complex nature. It is important to note that, while we used country group averages for simplification, it may obscure variations between countries within the same group and even at subnational levels. National-level statistics will certainly understate the importance of tourism for certain localities. While closely examining all the detailed observations and insights provided by the data is beyond the scope of this blog, we hope to have demonstrated that using disaggregated data results in a more nuanced and colourful depiction of employment in tourism industries and enables generating insights to help formulate effective, targeted, evidence-based policies to support the tourism sector and its workforce.

Methodology

An international statistical definition for the tourism sector does not currently exist. For the purposes of this blog, global employment in the tourism sector is defined using the International Standard Industrial Classification of All Economic Activities (ISIC Rev. 4) using the following classes: 

Accommodation for visitors

• 5510 Short term accommodation activities
• 5520 Camping grounds, recreational vehicle parks and trailer parks
• 5590 Other accommodation

Food and beverage activities

• 5610 Restaurants and mobile food service activities
• 5629 Other food service activities
• 5630 Beverage serving activities

Passenger transportation

• 4911 Passenger rail transport, interurban
• 4921 Urban and suburban passenger land transport
• 4922 Other passenger land transport
• 5011 Sea and coastal passenger water transport
• 5021 Inland passenger water transport
• 5110 Passenger air transport
• 5221 Service activities incidental to land transportation
• 5222 Service activities incidental to water transportation
• 5223 Service activities incidental to air transportation
• 7710 Renting and leasing of motor vehicles

Recreation and entertainment

• 7721 Renting and leasing of recreational and sports goods
• 9000 Creative, arts and entertainment activities
• 9102 Museums activities and operation of historical sites and buildings
• 9103 Botanical and zoological gardens and nature reserves activities
• 9200 Gambling and betting activities
• 9311 Operation of sports facilities
• 9319 Other sports activities
• 9321 Activities of amusement parks and theme parks
• 9329 Other amusement and recreation activities n.e.c.

Travel agencies and reservation services 

• 7911 Travel agency activities
• 7912 Tour operator activities
• 7990 Other reservation service and related activities

To generate the global tourism employment figures and aggregates, for countries where ISIC is available only at the 1- to 3-digit level, data are estimated using weighted shares from countries in the same income group with available 4-digit level data. The assumption is that the employment distribution is similar within countries of the same income group. The methodology is described here . 

Tourism industries are presented in this blog using 3-digit groups for simplification purposes. These groups may include activities that are not tourism-related. For example, transportation groups also include activities related to freight transport. 

Users should also note that the UN World Trade Organization, in partnership with leading countries, the ILO and the United Nations Statistics Division, has created a multidisciplinary and multi-stakeholder Expert Group on Measuring the Sustainability of Tourism to lead the development of a Statistical Framework for Measuring the Sustainability of Tourism . The framework aims to support a more harmonized and integrated measurement of the impacts and dependencies of tourism on the economy, society and the environment, at both the national and sub-national levels. The framework may result in a statistical definition for tourism-related employment which differs from the above. 

Souleima El Achkar

Souleima is an economist and labour market information specialist, with expertise in skills development systems. Since 2010, she has been working as a consultant on various projects for the ILO, Asian Development Bank and the World Bank.

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10% of Jobs are Worldwide Connected to the Tourism Industry – What Does That Mean?

Written by Izabela Soja on October 7, 2022 . Posted in Uncategorized .

Tourism is one of the world’s largest industries. According to WTTC , tourism prior to the pandemic accounted for 1 in 4 of all new jobs created across the world, 10.3% of all jobs (333 million), and 10.3% of the global GDP (US $9.6 trillion). Taking the above statistics into consideration, we can conclude that the sector contributes significantly to the economies and employment, being one of the main economic engines for nations. But how is it exactly possible that tourism creates so many jobs?

This article explores all the different employment opportunities tourism provides, explains why they are so important for the industry, and presents some of the challenges in the current workforce stemming mostly from the COVID-19 pandemic:

What are the employment opportunities in tourism?

Tourism can provide diversified employment in many different sectors, as the travel industry comprises various activities and services that create an overall tourist experience. Industries within the tourism value chain include accommodation, transport, food and beverage services, entertainment, and many more. Just think of your recent vacation – you first hopped on a plane, booked a hotel, and during your stay, you ate in different restaurants, went to different shops, and maybe even participated in local events. All the above aspects are part of the tourism industry, because you got involved in them as a tourist. 

The employment opportunities in tourism can be divided into those created directly or indirectly. This is because the tourism value chain is exceptionally vast and creates further employment impacts, which are not necessarily limited to tourism. 

Direct employment in tourism

All jobs where employees are involved in the creation of a direct tourism output fall under the category of direct tourism employment. Examples include hotels, airlines, travel agencies, tour operators, museums, national parks, state parks, cruise lines… and the list goes on. What these industries have in common is their sole focus on tourism – they operate for tourists, and because of tourists.  

Accommodation and transport activities are the most vital and integral ones in the tourism industry. They provide a base from which people can start their travel journey. Within the accommodation sector, there are multiple different types of lodging, ranging from hotels, hostels, B&B’s, or guesthouses. These can be either individually or family-owned, but also belong to the multi-chain operators. Therefore, employment opportunities are endless, as each accommodation type requires both high-skilled and low-skilled workers – from managers, and finance operators, to the housekeeping and cooking team. 

Indirect employment in tourism

According to the UNWTO report , “one job in the core tourism industry creates about one and a half additional (indirect) jobs in the tourism-related economy”. Moreover, “there are three workers indirectly dependent on each person working in hotels, such as travel agency staff, guides, taxi and bus drivers, food and beverage suppliers, laundry workers, textile workers, gardeners, shop staff for souvenirs and others, as well as airport employees”. 

Tourism is an extraordinarily labor-intensive industry. Each direct tourism provider carries several different suppliers crucial for the efficient operation of that provider. Some of the examples of indirect employment opportunities that tourism supports are restaurant suppliers, marketing agencies, accounting services, manufacturers, or souvenir producers. They may not be exclusively linked to tourism, but they are essential for its success. Therefore, these types of jobs are also considered part of the tourism industry – just behind the scenes. And when they all add up together, there’s no wonder why tourism holds such a great power to generate employment!

The importance of tourism in providing employment opportunities 

Anyone can start working in tourism.

In terms of employment opportunities, tourism is a great industry for anyone starting their career journey. There are many roles that do not require any specific qualifications and are relatively easy to get into – for example in hospitality. This is especially important for young people seeking a part-time job alongside school or university, migrant workers, women , minority groups, and many more. 

People are at the heart of the tourism industry

Given that tourism is such a vast and diverse industry, it can attract people from different backgrounds. Tourism relies on its exceptionally skilled workforce in order to provide high-quality services and experiences to visitors. Therefore, recruiting suitable staff should be at the heart of each tourism business. Tourists’ experiences are highly dependent on the service they are provided, so fostering relationships between human resources and the tourism industry is crucial.

Connecting with local people during travels

Tourism is a tool for poverty alleviation

Tourism can also be a fantastic tool for poverty alleviation, which is especially important in underdeveloped countries. The industry has a great potential to generate direct income for the poor in the places they live. Many tourism businesses are owned by individuals and their families, which in turn enables deeper interactions between guests and host communities. These small-scale businesses often include guesthouses and restaurants as they often do not require much capital to invest into. Therefore, many communities can start making their living through tourism.

One of the greatest examples of how travel connects locals and visitors is ResiRest – a social enterprise that works as an impact connector between local families and travelers. This organization links local home-cooks to international visitors for a unique and authentic food experience. “Eating local” is a fantastic way not only to support local communities, but also allows for more enriching and memorable experiences during travels. And what better way to immerse in a different culture than by trying local food?   

Solimar is also involved in projects that facilitate revenue generation for the host communities – Artisan Development in Morocco is one of many examples. This project aimed to create direct linkages between local artisans and buyers, while decreasing the use of middlemen in sales of the crafts!

Current challenges in the tourism workforce

Although tourism is such a powerful industry for generating employment, it is currently facing significant challenges due to staff shortages . Resolving this issue is essential for tourism’s growth and bouncing back after the Covid-19 pandemic. Travel restrictions made a number of employees move into different industries – therefore, tourism must now compete with other sectors in order to attract new workers. Other contributing factors include the lack of migrant workers, whose number started shrinking dramatically in 2020. For example, when Brexit was introduced in the UK, many people decided to return to their home countries. This has resulted in the lack of a suitable workforce in many industries, not only tourism.

How can we ensure sustainability in the tourism workforce?

In order to attract new talent to the industry, tourism must implement various incentives and re-evaluate its human resources practices. This could be achieved by providing extensive training opportunities to enable people to work their way up in a company. Next, tourism must facilitate flexible and remote work opportunities. This should be executed not only for the employees’ convenience, but also as a way to overcome travel mobility restrictions. Utilizing digital technologies is a great step towards ensuring productive tourism operations as well.

Tourism truly is a one-of-a-kind industry, providing countless opportunities that can really make a positive impact on our society. If done the right way, tourism can be the most viable option for sustainable economic development. Therefore, considering a career journey in this industry leads to fantastic and rewarding opportunities.   

Interested in working with us? Learn more about our virtual internship opportunities here !

Tags: #sustainabletourismapproach , economics tourism , employment tourism , future of tourism , tourism economic growth , tourism for good , tourism industry , tourism jobs , Tourism trends